US Dollar weakens providing support to Gold
Updated
The US Dollar Index, which measures the value of the dollar against a basket of other currencies, has decreased by 0.25%, which is counteracting the downward pressure on XAUUSD.
The price of gold is trading within a narrow range of $1,950-70s during the European Session on Tuesday and is currently facing resistance at $1,960. The recent surge in gold prices to over $2,000 last week due to panic-buying during the banking crisis was short-lived.
From a technical perspective, there are bearish patterns on the 4-hour chart, which suggest that there is a risk of further downside to key support at $1,934. If the gold price fulfills its target based on the length of the measured move, it could drop below the neckline and decline sharply to a target of around $1,900.
The RSI momentum indicator is falling faster than the price, indicating underlying weakness and supporting a negative outlook. However, a decisive break and close above $1,960 would invalidate the near-term bearish picture, and the uptrend would remain intact as long as gold stays above $1,934.
Looking at the technical analysis, it appears that the Gold price may be following a three-wave measured move pattern, which is similar to a zig-zag pattern, starting from its highs of $2,003.
If the price reaches its target based on the length of the measured move, it could decline below the neckline and experience a sharper decline down to approximately $1,900.
Furthermore, by using the height of the double top as a guide, we could see a more profound sell-off to the support level around $1,880, as supplied by the 200-4hr Simple Moving Average.
The Relative Strength Index (RSI) momentum indicator is falling more rapidly than the price, indicating underlying weakness through a bearish divergence, which supports a negative outlook.
However, if the price makes a decisive break and closes above $1,960, it would invalidate the near-term bearish picture.
The price of gold is trading within a narrow range of $1,950-70s during the European Session on Tuesday and is currently facing resistance at $1,960. The recent surge in gold prices to over $2,000 last week due to panic-buying during the banking crisis was short-lived.
From a technical perspective, there are bearish patterns on the 4-hour chart, which suggest that there is a risk of further downside to key support at $1,934. If the gold price fulfills its target based on the length of the measured move, it could drop below the neckline and decline sharply to a target of around $1,900.
The RSI momentum indicator is falling faster than the price, indicating underlying weakness and supporting a negative outlook. However, a decisive break and close above $1,960 would invalidate the near-term bearish picture, and the uptrend would remain intact as long as gold stays above $1,934.
Looking at the technical analysis, it appears that the Gold price may be following a three-wave measured move pattern, which is similar to a zig-zag pattern, starting from its highs of $2,003.
If the price reaches its target based on the length of the measured move, it could decline below the neckline and experience a sharper decline down to approximately $1,900.
Furthermore, by using the height of the double top as a guide, we could see a more profound sell-off to the support level around $1,880, as supplied by the 200-4hr Simple Moving Average.
The Relative Strength Index (RSI) momentum indicator is falling more rapidly than the price, indicating underlying weakness through a bearish divergence, which supports a negative outlook.
However, if the price makes a decisive break and closes above $1,960, it would invalidate the near-term bearish picture.
Note
4hr - look at how price is reacting to both the blue 20SMA and black 50SMA. Plus all that bearish divergence on MACD. I don't see things turning up from here. Shorting to neckline of head and shoulders, stop above right shoulder.
Note
s3.tradingview.com/snapshots/m/mkt7q2Cm.pngNote
Gold price is looking to extend the previous weakness while defending the $1,950 level so far this Thursday.The extended rebound in the United States Dollar (USD) is boding ill for the Gold price
Note
The 14-day Relative Strength Index (RSI) is edging lower but trades above the midline, suggesting that Gold price could see some dip-buying.If Gold price bounces off the abovementioned trendline support, then a fresh run-up toward the static resistance at $1,975 cannot be ruled out.
Buyers will then look out for the weekly high at $1,981 on their way to the $2,000 psychological level.
Note
Only for Next 15 minBuy Stop XAUUSD1984
TP 1986
TP 1988
SL 1980
Note
Gold Will be Up After News USA NY time. Core PCE Price Index forecast is 0.4% where previous was 0.6% so that USD will be weaken again. 1990 to 2009 between 8 to 11am NY time. Also we have Michigan Consumer Sentiment at 10.
All index shown USD weaken.
Note
ISM Manufacturing PMI Forecast 47.5 previous 47.7 Manufacturing PMI growth is usually seen as positive for the US dollar.
Here we see little down side USD.
So that my Estimation is NY time 10:00am you will see Upside XAUUSD around 1945 to 1970
Before ISM report it will go downside to 1944 to 1935 max. And NY time 10am you will see around 19060 to 1970.
'Take Care
Note
ISM Manufacturing PMI Actual is 46.3 Forecast 47.5 previous 47.7Manufacturing PMI growth is usually seen as positive for the US dollar.
But Actual is 46.3 So USD Downside.
Note
Tomorrow NewsNY time FORECAST PREVIOUS
8: 30 Trade Balance $-67.941 B $-68.289 B USD Strong
9:45 S&P Global Services PMI 53.8 53.8 USD Neutral
10:00 ISM Non-Manufacturing PMI 55.2 55.1 USD Strong bit strong
10:00 ISM Non-Manufacturing Employment 52:00 54:00 USD Weak
10:30 EIA Crude Oil Stocks Change 0.146 M -7.489 M USD Weak
Another Big Day.
So that we can see another uptrend's here ..
Note
Upcoming News =========================
6 April, Thursday NY time
8:30am USD Initial Jobless Claims Forecast 194 K Previous 198 K USD STRONG
7 April, Thursday NY time
8:30 USD Unemployment Rate F 3.5% P 3.6% Good for USD
08:30am USD Average Hourly Earnings m/m F 0.4% P 0.2% Good for USD
08:30am USD Private Nonfarm Payrolls F -29 K P 265 K very Good for USD
All forecast showing Good for USD
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